The postponing or abolition of draconian laws by the Govt of UP led by Chief Minister Yogi Adityanath is a welcome step and should also be adopted by the central government in the interest of the country.

By CA Jugraj Singh Bedi & Adv Yogesh Mittal

New Delhi, May 08, 2020:

Amidst the global pandemic of COVID 19 which resulted in lockdown imposed by Central and State Governments for last 45 days, a kind of relief news came from the Uttar Pradesh that the State Government has postponed their compliances of Laws related to labour laws for next 3 years.

According to Labour Minister Swami Prasad Maurya, the Yogi Adityanath government in Uttar Pradesh has brought in an ordinance exempting businesses from all key labour laws for the next three years. Only three labour laws will be applicable in the state during this period apart from provisions related to children and women in the suspended laws.

The three include the Building and Other Construction Workers Act, 1996, Workmen Compensation Act, 1923, and the Bonded Labour Act, 1976. Section 5 of the Payment of Wages Act, 1936 (the right to receive timely wages) will also apply in the state during this period.

The decision to approve the Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020, to exempt factories, businesses, establishments and industries from the purview of the laws, was taken on Wednesday in a Cabinet meeting chaired by Chief Minister Yogi Adityanath.

This means that at least 13 laws including the Minimum Wages Act, Employees’ Provident Funds and Miscellaneous Provisions Act and Employees’ State Insurance Act will stand suspended for three years.

The Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020 will now be sent for approval of the centre.

This step is aimed at reviving and boosting various businesses and industries that have taken a hit due to the national lockdown, a UP government spokesman said.

Businessmen and Entrepreneurs may not get direct benefit from this, but they will definitely get benefited in other ways.

The biggest benefit will be freedom from the bribery and corruption of corrupt officials and some relief from red tapism.

With this reform the business houses do not have to bother about the Labour Inspector and its related cost. The cost of running a factory will decrease immensely.

The burden of proof for the compliance to be done will get waived off and the numbers and kind of permissions which are required will also get reduced.

In the current troubled times, when most foreign businessmen are thinking of leaving China, it can bring a bold and far-reaching result.

Today, due to this pandemic, many businesses have not only been destroyed, but livelihood of lakhs of labourers and their families has been deeply affected.

At present, there is only one opportunity left for the labourers in the village and that is of central Govt. scheme popularly known as MNREGA, which guarantees minimum days of work in rural area.

Everyone is aware of the present condition of MNREGA, which has become a favourite money minting tool in the hands of corrupt officials and politicians. The MNREGA has deviated from its original objective and has now become a source of corruption for the persons who are in the helm of affairs.

The postponing or abolition of draconian laws by the Govt of UP led by Chief Minister Yogi Adityanath is a welcome step and should also be adopted by the central government in the interest of the country.

Now the Central and State Governments should get rid of such laws which were earlier brought by the Government and by which today's official class is using them for their own personal interests and corruption.

If the government wants, then by taking help from medium and small businessman the labour reforms can also be done.

The ranking of India in the world will immensely increase in terms of Doing Business in India with this one single reform related to labour and employment.

In the period of this global pandemic era, the government will have to create a transparent system with quality that can compete with other countries globally in price mechanism.

The government should not only provide a platform for industries to compete globally, but they should market those products in the world.

The government must bring a change in its policy that a businessman is not a thief, but he is depicted as thief by some people who have vested interest in doing so.

Businessmen is made and depicted as thief by those corrupt officers and employees who themselves go out clean.

(The writers are associated with JS Bedi & Associates, a prominent Insolvency and Bankruptcy Professional’s firm based in Delhi-NCR. Contact - jb@jsba.in)

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